Where must a Burros Fries franchisee offer services?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee is asked to conduct business at an off-site event (such as: community events, consumer shows, festivals, expos, etc.) or perform Services outside its Territory in which there is another franchise or company-owned business, Franchisee must immediately refer that request to the franchisee in that geographical area or directly to us. Franchisee must not conduct business at any off-site event or perform any Services outside its Territory if another franchise or company-owned business is operating in that area. If we (where there is a company-owned business) or the other franchise determines it is in the best interest of the person or business for Franchisee to conduct such off-site event or perform Services, then Franchise can immediately proceed. If there is not a Burros & Fries Business in that other area, then Franchisee can immediately conduct such off-site event and/or perform such Services, however Franchisee must be prepared to refer the off-site event or the person or business receiving Services to another franchisee when the unassigned area is purchased. We and other franchisees and company-owned businesses must refer off-site events, people and businesses that are within Franchisee's Territory to Franchisee and also reserve the same right to conduct off-site events and/or perform Services within Franchisee's Territory if it is determined, to be in the person's or businesses' best interest, by the franchisee of that territory.
If during the term of this Agreement, Franchisee is unable to promptly and properly provide Products or Services to any person or business due to excessive work or other cause; then Franchisee must immediately refer that person or business to another franchise, company-owned business or to us. Failure of Franchisee to: (i) refrain from Target Marketing and/or (ii) refer off-site events and/or person or businesses seeking Services as described herein, will result in us having the right to terminate this Agreement as specified in Section 23.C. For any default of this Agreement which triggers our ability to terminate, then as an alternative to termination, we will have the right, in our sole discretion, to modify or completely eliminate any rights Franchisee may have with respect to the protected area status of the Territory, effective ten (10) days after delivery of written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee's primary location for offering services is within their designated territory, operating from an enclosed space of approximately 2,500 to 3,000 square feet that is separate from other businesses and has its own locking door. Franchisees are expected to offer a variety of sandwiches, plates, salads, and beverages for lunch and dinner, prepared fresh daily using proprietary recipes. They may also sell novelty items and provide catering services. The FDD specifies that Burros Fries also reserves the right to offer products and services through the internet, without compensating the franchisee.
Burros Fries franchisees may be asked to conduct business at off-site events such as community events, consumer shows, festivals, and expos, or perform services outside their territory. However, if another franchise or company-owned business operates in that area, the franchisee must first refer the request to that franchise or to Burros Fries directly. The franchisee can only proceed with the off-site event or service if the other franchise or Burros Fries determines it is in the best interest of the person or business, or if there is no existing Burros Fries business in that area.
Burros Fries retains significant control over distribution channels, including the internet. The franchisee is prohibited from independently marketing on the internet or conducting e-commerce without written consent from Burros Fries. This restriction limits the franchisee's ability to leverage online platforms for business development and marketing, potentially impacting their reach and revenue opportunities. Franchisees must rely on Burros Fries for internet-based sales and marketing initiatives, which may not always align with their local market needs or strategies.
If a Burros Fries franchisee cannot promptly and properly provide products or services due to excessive work or other causes, they must refer the person or business to another franchise, a company-owned business, or to Burros Fries itself. Failure to comply with these requirements, including refraining from target marketing or referring off-site events and service requests as described, can result in the termination of the Franchise Agreement or modification of the franchisee's protected territory. This underscores the importance of adhering to the franchisor's guidelines and maintaining open communication to avoid potential penalties.